The Commerce Department's retail and food services sales tally for January rose 7.8% from January 2010 and 0.3% from December. For the most part, merchants and manufacturers worked to line up wares that shoppers wanted at prices that attract consumers who are now more frugal.

Retail sales have perked up in November and December, but consumers aren't resuming their old habit of using credit cards to splurge on gifts. According to a new poll, more than half of American adults say they're sticking with cash this holiday shopping season.

An economist at Duke University believes that "gift inflation" is a prime problem during the holidays, one that makes everyone less happy in the long run. The solution? Spending less and keeping it simple.